Nikkei falls, may snap 12-week winning streak on euro zone worry
* Sony dives 9 pct * Fujitsu rises on chip unit restructure * Nikkei may snap 12-week winning streak * Nikkei in short-term correction - analyst By Ayai Tomisawa TOKYO, Feb 8 (Reuters) - Japan's Nikkei share average fell for a second day on Friday as investor sentiment was dented by gloomy comments from the ECB president on Europe's outlook, while Sony Corp tumbled on worse-than-expected quarterly results. The Nikkei average fell 1.4 percent to 11,200.44 by the midday break, retreating from a 33-month high of 11,498.42 struck on Wednesday. Hit by a sell-off for two straight days, the Nikkei is only up 0.1 percent this week so far, which suggests it may snap 12 straight week of gains, its longest winning streak in 54 years. Among Friday's losers, Sony Corp led the falls and was the most-traded stock on the board by turnover, tumbling 9 percent after profits in the October-December quarter missed market expectations. Sony's share price rocketed 42.1 percent in January, catching up with sharp gains in the Nikkei after a lag through November and December. "The company's stock has been bought because of a weakening yen, but unless it can show that its top line is also growing, it does not look very attractive," said Hajime Nakajima, a deputy general manager at Iwai Cosmo Securities. Exporters were sold, with Panasonic Corp sliding 5.0 percent and Canon Inc dropping 1.5 percent. Meanwhile, Fujitsu Ltd bucked the overall market weakness and hit a 10-month high after the company said it would reorganise its microchip business, jumping as much as 8 percent. Fujitsu and Panasonic Corp said on Thursday they were combining their struggling LSI chip units, which produce highly customised chips used in a range of consumer electronics. SHORT-TERM CORRECTION Analysts said that investors stayed on the sidelines on Friday partly because the yen's slide has paused, while some investors are reluctant to take big positions before the three-day weekend. Markets are closed on Monday in Japan for a national holiday. With the Nikkei rising nearly 30 percent from mid-November, when Prime Minister Shinzo Abe began calling for aggressive monetary easing, investors have waited for the time to take profits. "In the short term, Japanese shares are likely to see a correction if the yen does not weaken further," said Chisato Haganuma, chief strategist at Mitsubishi UFJ Morgan Stanley Securities. But he said that aggressive buying by foreign investors will likely support the market in the mid-term. Analysts also said that heavy trading volume indicates investors' strong interest in the Tokyo market. On the Tokyo Stock Exchange's main board, 5.14 billion shares changed hands on Thursday, its second highest volume on record. By the midday break, the broader Topix dropped 1.0 percent to 960.00, with 2.33 billion shares changing hands, slightly lower than Thursday. On Friday morning, risk appetite was low after European Central Bank President Mario Draghi said while economic activity in the euro area should recover gradually in 2013, there were more negative risks than positive ones. "Investors have traded on Japanese domestic cues related to monetary easing, but worries about the health of the global economy are dominating the mood today," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. The dollar last traded at 93.52 yen, retreating from 94.06 on Wednesday, the highest since May 2010.
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